tv Fareed Zakaria GPS CNN April 22, 2012 10:00am-11:00am EDT
we begin with a tour of the world from the french elections to the syrian standoff to india's nuclear missile test. all with a great family. you've heard of the brics. one of the world's top investors says brazil, russia, india, and china have hit a brick wall. why and who will take their place as the next hot emerging markets? then andrew sullivan on why he had to wait almost 20 years to get a green card in the united states. it's a fascinating, troubling story. we're also going to look at the war on drugs in mexico. could it actually be working? first, here's my take. a new poll in the united states shows that americans are still deeply frustrated at the slow pace of the economic recovery. that's understandable. unemployment stays stubbornly high. i was just in europe, and they think america is booming.
consider this. the u.s. economy is on track to grow between 2% and 3% this year. in europe, by contrast, half the euro zone economies are going to actually shrink this year and not one major european country will grow over 1%. last thursday christine lagard, the head of the international monetary fund and former french finance minister, said there were dark clouds hanging over the global recovery and that the euro zone was at the epicenter of potential risks. borrowing costs for countries like spain, italy, and greece are rising again. what is going on? didn't it look like the europeans had managed to avert a crisis only a few weeks ago? yes, it did. mario, europe's new central banker, had adopted a version of ben bernanke's policies and injected money into the european financial system and economy. his efforts are now being undercut by the germans which
reflects germany's obsession about inflation even at the cost of growth. the larger failure shared across europe has been too much austerity. consider the date that we started. the u.s. economy which received monetary and fiscal stimulus will grow at well over 2% this year. european economies that have followed the path of cutting spending, raising taxes to reduce deficits are finding themselves in a downward spiral, cutting spending means laying off people, which means less demand for goods and services, which means the economy shrinks, which ironically, means lower tax revenues and, thus, larger budget deficits. take a look at britain. 6 britain has followed a brave austerity plan cutting government spending across the board and raising taxes. the result? british growth has stalled. the economy will grow barely 0.8% this year. while its budget deficit was
predicted to be under $13 billion in february, it was, in fact, $24 billion for that month alone. after its austerity program, spain has hit 20% unemployment. 50% youth unemployment, and now has a much larger budget deficit that projected. europe needs structural reforms that will cut spending over the long-term by raising retirement ages and cutting benefits. it also needs pro-growth reforms that open up its labor markets. most importantly, for now it needs to stop and pose in ahs arlt in a depressed economy and learn go something from the example across the atlantic. 2.5% growth may not look so great in america, but it is a lot better than negative 0.3%, which is the current estimate for the euro zone's economic
growth. let's get started. >> we will start with a world tour. joining me now, the former director of policy planning at the state department and now back teaching at princeton. edward, from washington columnist for the financial times and the author of an excellent new book "time to start thinking" america in the age deef sent. brett stevens, the foreign affairs columnist for the "wall street journal" and emmanuel san martin, the new york correspondent for france 24. emmanuel, tell us, it appears that he continues to gain strength, and i was in europe last week. from all indications, he is likely to be at the very least a very strong challenger of perhaps even defeat president sarkozy. he proposes a 75% tax on all income over a million euros.
he is on the left. he is proposing 100% tax on all income over 500,000 euros. what is going on? >> you have to remember, it's a two round election. what we're talking about here is the first round, so it's like a primary here on the left side. you have -- in a way you have to be on the left to make sure that you are going to be in the second round. you know? every side is -- has to gather. that's what's going on right now. he himself said that 75% is -- it's not going to change anything. we have the real election two weeks later on second round. then people from the center are going to decide this election. you are going to see i guess a shift from this.
>> what's remarkable is how feckless it is both right and left. >> you have italy, spain, and portugal radically restructuring, downsizing the size of their state, imposing austerity budgets, because they realize they can't go on as before. in france you have oland with promising 60,000 new jobs for teachers, and then sarkozy promising another sort of form of hand-outs. france seems to be at least judging by the rhetoric coming out of this election living in a different age as if there's still at an age of plenty and prosperity where the welfare state can continue to grow and the continent isn't in the middle of this seismic, economic and generational crisis. >> this is, of course, the economist cover of france. europe's most frivelous election. >> the age of denial. >> what is going on? >> the candidate that to me
symbolizes a guy called chaminade. >> that shows how well -- who wants to kolonnize mars. he is the french newt gingrich, and i think he kind of symbolizes that the age of denial of this election, but, you know, in two week's time, it's going to become very -- a very real election, and there's going to be two very real choices. i do agree with brett, though, that neither of the platforms put forward by sarkozy or elan are remotely useful to the situation they find themselves in. it has 90% debt of the proportion of gdp. it's made no efforts to reign in its budget over the duration of this crisis. it's lost its triple-a credit rating. it might not be the next spain. spain is the next spain. but it's not that far off. france has lost that sort of franco-german geomotor control
of europe over the last few years. >> if elan wins, does it -- will it make left wing politicians in europe say this is the way to win elections? be a left wing populist. there's a sense in which people have been trying to figure out which way is the wind blowing in the western world? idealogically and elan's win could can be a big moment if he wins. >> i'm not sure there's one template for left politicians across europe at this point. i can't imagine a german politician winning on that platform on the left, and the british have their own configurations. i'm not certain that that's going to be true across europe. the main thing if oland wins, it's going to make u.s. foreign policy a lot harder. all right? sarkozy has been hugely important on iran. he was on libya. on syria. he has really stood very, very firm, indeed, as hard as the
president obama, and if he is replaced by someone who is going to look inward, who is not going to be willing to really get out there and take a hard line on countries like iran, the u.s. is going to have haireder tomb. >> i'm not sure about that. there is remarkable policy in france. left, right, it's pretty much always some kind of foreign policy, and the president of the french who is a socialist a few weeks ago here and in washington the president precisely says that. nothing is going to change. >> i have to ask about syria. fwloo is anything going to happen? >> something is going to happen, but not fast. i think the annan plan is not working. the administration is moving towards recognizing that
publicly. the secretary of defense testified last week that planning is ongoing. secretary clinton is moving toward other measures. it's going to be slow, and it's going to be slow because we're still not ready -- the u.s. is still not going to take unilateral action, so that takes you with the u.s., turkey still, the arab league, it's this game of after you. you know? we're not going to move unless the turks and the arabs are with us. they need us to support. everybody wants the u.n. security council to authorize this. i think we're going to see action, but i don't think it's going to be fast. >> should we go faster? >> of course, we should because we run the risk that assad will roll up the opposition before we have a chance to decide whether intervention is worthwhile. you have 10,000 syrians dead. there's an subjects that the syrians are always going to come out in the street to oppose the regime. at a certain point you kill enough people in the street, they become afraid to come out. >> i have the opposite question. can this insurgency really succeed? are there -- they haven't been
able to hold any territory. >> the libya example gives us hope that if nato or an outside power intervenes even in a limited way, they can coral strength because they obviously enjoy massive public support and they enjoy a safe haven in turk any, but that rears american leadership, and i think it requires it soon, and i nabbed the reluctance of the pentagon to get itself involved in another middle eastern war, but that has to be balanced against the stakes involved here. i mean, if as yad stays in power, we should consider what happens to american interests in the middle east if assad stays. not least of them, this touches on our negotiations with iran because we have said reatedly that the fall of the assad regime, and this is right, would be a major strategic setback to the iranians. where do we stand visa have i iran in the nuclear negotiations if in six months time assad is still comfortably in power, the opposition is in disarray or exile. >> when we come back, we are going to talk about the indian missile test, about china,
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we're back with ann marie slaughter, brett stevens, ed, and emanual st. martin. ed, you used to be the correspondent in india. india just announced a big nuclear missile test, and they made absolutely clear that it was a missile that could reach china, it could reach shanghai and beijing, and its purpose was deterence. do you think we're witnessing the beginnings of a kind of asian arms race? >> i think we're already in the asian arms race. i mean, india could have chosen to conduct this missile test at any stage in the last two, three years. the timing of this is quite interesting, though, given the fact that, you know, china does have a more assertive role in the last two years, but china is also in a transition phase, and i think you have a weak
government in india, and this is one way of showing that it's still got strength and can flex its missiles, and, of course, the agony is the god of fire. it can reach shanghai. for the first time india is in a parody. therefore, in nuclear terms with china. i suspect we're going to be seeing a lot more of this. i do suspect this has always been the case with an indian test, whether it's a nuclear or missile test. we're going to see some pakistan version sometime in the very near future. >> what i find interesting about the test isn't so much what it says about india, it's what it says about chooirn, and really i think the failure of chinese foreign policy over the past decades. i mean, now just in the last year you've had burma turn very sharply away from its chinese patron towards the west. the vietnamese next week will be conducting naval exercises with the united states. japan, south korea, taiwan.
the entire rim of australia where we're going to be deploying marines, the entire asian rim has decided that their fate isn't -- their future isn't married to an -- it's containing the rise of a very aggressive and somewhat scary state. >> these countries hold -- well, most of these countries hold regular naval exercises and war games with india as well. india's relations with those around china's rim. >> they dernl do with the united states. they all want the insurance policy of the u.s. navy. >> i don't disagree with you about china's -- the failure of chooirn's policy, but i don't think this was exactly a brilliant move for india's foreign policy. india does this right when we're in the midst of once again having talks with the iranians where they've been extremely unhelpful with respect to sanctions on the iranians, and where we've got a real problem with north korea again, and north korea has just launched a rocket that failed. just at this moment india really needs to test a -- >> i think india is not britain. that's the thing, and it keeps
wanting to demonstrate that. that they -- that it's not going to be a global lieutenant of the united states. there is no treaty there. i understand your frustration. time is not helpful from an american point of view. >> your point that we're clearly -- we're winking at the indian nuclear program while -- >> or just that it makes it so much harder to talk to the iranians or north koreans when they're pointing to another country that is, in fact, a nuclear power that, of course, didn't sign a nuclear treaty, but that, nevertheless, is saying we can do it, just as it's got other countries around that are going to say we too are on the global stage. >> a moment of clarity. i don't think anyone is going to go to sleep tonight lying awake thinking, oh, my goodness, the indians now have a new missile that can reach china. why? because india is basically a responsible and now very democratic power. that's the real issue. we talk about our problems with iran and north korea as essentially legal problems that are potentially in breach of npt. our problems with these regimes
they're awful regime with barbarous intentions. it might clear up our thinking about proliferation if we say we don't really mind when india acquires this kind of capability. what we fear is an iran or a north korea doing it. >> brett, why exactly was this wonderful responsible power not willing to impose sanctions on iran when everybody else is actually giving iran a major out? i mean, if they're so great and they're so noble and the iranians -- >> well. >> they dpoent want to be britain, but they do like to be france. that is sos -- >> i rest my case. >> it's here from the -- >> you can make a case that actually this was not aimed at china as much as the united states in temz of the funeral. trying to say that they are power. when you look and following the u.n. here in new york, among other things, and when you look
at what india is doing in the security council -- they've been in the security council for one year, and they align themselves with china, not with the u.s. the ambassador of india, the ambassador on the security council on syria is actually the most -- the defendant of -- >> is the most pro-syrian ambassador among the -- even -- even the russian ambassador is not sometimes. so, yes, there are maybe, you know -- they're not going to use their nuclear bomb against the u.s. but they're not aligning themselves with the u.s. >> it's totally a measure of how much the u.s. wants india's friendship that it now backs india's permanent membership of the u.n. security council even though it has a voting record against the u.s. resolutions, bar none, i think. i may be wrong. it's probably cuba. a few others. india is probably -- >> all good things don't go together. you have a wonderful democracy
of this foreign policy. >> it's on the -- the vaulgz of the state are basically with american ones, and we can live with our differences, our diplomatic ones. >> are we willing to say that, in fact, france's independence is a great thing? >> yes. france is a marvelous thing. i wish our separate prosperity. >> on that note of franco-american friendship, brett stevens, and emmanuel st. martin, and -- thank you all very much. up next, what in the world? despite 50,000 drug-related killings, mexico is winning its war on the cartels. i'll explain. [ man ] may ford. hi, yeah. do you guys have any crossovers that offer better highway fuel economy than the chevy equinox? no, sorry, sir. we don't. oh, well, that's too bad. [ man ] kyle, is that you? [ laughs ] [ man ] still here, kyle. [ male announcer ] visit your local chevy dealer today. right now, very well qualified lessees can get a 2012 equinox ls for around $229 a month.
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now for our what in the world segment. i saw something that got me thinking last week. yet another drug bust in mexico. bricks coffee contain and cash are exposed as the cartel leaders are led away. it seems like what you have come to expect from mexico. but the scenes you are looking at aren't real. the actors are actually children. the video was part of a campaign to get mexico's presidential candidates to think about the
future. meaning mexico's children. get it? the drug wars dominate the discussion in mexico, and in many border states in america as well. there have been nearly 50,000 drug-related killings in mexico since president philippe cauldron began his six-year term. that means -- calderon is widely viewed as having blundered in taking on the drug cartels, but i have always admired his courage in doing so. it might just be paying rewards. robert barner is a former u.s. drug enforcement official, and he is also served as a commissioner of u.s. customs and border protection. in a recent international herald tribune op ed and a essay, he argues that despite the negative headlines, president cauldron has made huge gains.
his point is that when cauldron came to power, mexico's half dozen cartels were making up to $10 billion in annual revenue from drugs alone. they bribed officials and the police. those they could not bribe, they killed. cauldron had no existing means to defeat them, so he enlisted the military. a brute force that could target cartel leaders and win in an all-out gun battle. 50,000 lives is a heavy price to pay, but this was never going to be an easy war. the cartels had almost taken over mexico. the dataroves his point. it seems the tide is finally turning. using cauldron's strategic, the mexican government has killed more than 40 major cartels members. the economist magazine points out that between 2007 and 2008 the number of drug-related killings in mexico rose by 29%. in the next two years it rose by
22%. then by 28%. last year, however, there were signs of a plateau. only an 8% rise. with many cartels now severely weakened, that number could fall further. a pew poll conducted last spring shows that while only 45% of mexicans believe the government is making progress against the cartels, 83% support cauldron's strategy of using the army to fight them. when a government forcefully commits to take on an international terrorist or drug group, it usually wins. this is what happened in columbia over the last decade, and it will likely happen in mexico over the next few years as long as cauldron's successor stays with the fight. the mexican elections begin in july and cauldron steps down in december. if mexico's children are, indeed, to grow up in safer conditions, then its leaders need to continue to press on in
the war on drugs. even mexicans who have to live with the violence agree on one thing. some action is better than the previous policy of no action at all. of course, success in mexico probably means the cartels will mover to central america. guatemala is already becoming the next frontier. you see, when the richest country in the world has an insashable demand for drugs, someone is going to produce them and meet that demand. that's for another week. up next, why the global economy is going to hit a brick wall. bric, as in brazil, russia, india, and china. coming up. [ banker ] mike and brenda found a house that they really wanted.
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i'm candy crowley in washington. fareed zakaria will be back in 90 seconds. first, the top stories. reverse engineered an american spy drone captured by its armed forces last we're and has begun building a copy. u.s. officials have acknowledged losing the drone, but they say it would be difficult to exploit any of the technology from the aerial vehicle. >> china and russia began their first joint naval exercises. chinese state-run media says the war games will include 16
chinese vessels, submarines, and russian supply ships. the exercises run through friday. in france voters are casting ballots in the fist round of a presidential election that pits president nicolas sarkozy against nine other candidates. the economy and jobs have been key election issues as france struggles to overcome a 10% unemployment rate. those are your top stories. now back to fareed zakaria "gps." the big economic story of the last decade has been the emerging markets, the rise of china, india, brazil, and others. well, one of the world's leading emerging market investors says the party is over. richard sherma, the director of emerging markets at morgan stanley and the author of a terrific new book "break-out nations." he joins me now. why, to use your phrase -- why have things hit a brick wall? b-r-i-c wall? >> if you look back at the
history of investments in the last four to five decades, economic patterns, away you would see is that every decade that is some popular thing which captures the imagination of everyone. in the 1990s it was tech. 1980s was japan. last decade i think what really caught the imagination of investors was this term called bric. it's not just investors. political people, business people. >> brazil, china, india, russia. >> i think it's important how this term came into being and as to why i think this is looking like a spent force. i don't think it's still for all emerging markets. i think this concept is looking quite tired to me, and here's why i think. if you saw the previous deck odd, it was an exceptionally freaky decade for emerging markets. every single emerging market last decade did really well. at the peek here in 2007 the average growth rate of emerging markets was close to 8%. the average growth rate i'm talking about here. and what happened that year was quite significant.
that typically in any year in history around 20% of the economies grow at about 5%. in that year more than 50% of the world's economies grew at more than 5%. >> what are you saying basically is you had cheap capital, benign conditions, low interest rates, and this was fueling growth almost inskrim atley around the world. >> yes, that's right. in a way that's never been done before. now following the 2008-2009 financial crisis, i think we have all understood that for the western world what this means that this means a new normal, lower growth rate because of debt. i don't think we've quite presenteded what this means for the emerging market, and my point is that the previous decade was a freaky decade for emerging markets, and now they will return back to a nor normalized growth path, which will last 50 years. est a growth rate of around 5% or so, and some of the big economic stars of the previous decade are looking quite tired.
all the word from the ground is that things are slowing down considerably. china's economy now hazmat urd. it's a truly middle income economy. it's per capita income is $6,000, and an economy can sprint, but its per capita income is $1,000 to, $2,000. but at $6,000 the ability of an economy to grow at 8% to 9% is very limited. that's the lesson from history. >> you travel around the world a lot, of course, trying to figure out investments. you began to sense that the way we were looking at all these emerging markets wasn't quite right, and you came up with some simple ways of thinking about it. so you have this thing called the four seasons index. explain what it is and whats the conclusion? >> one thing i've tried to do in the book is to sort of make it as accessible as possible, and i find that economists use a lot of complicated metrics to try
and say some basic truths, so one of them is extreme valuations. just look at the four seasons hotels in the various emerging markets or equally high-end momentses that gives you a sense of whether a country is expensive or cheap for doing business, and it sort of conform with my general thinking here about these emerging markets. if you look at this four seasons index, the most expensive places to stay in emerging markets are brazil and russia. and the places that are quite cheap, which is indonesia, thailand, or even in eastern europe, such as poland, and i think this tells you something, that the currencies in places supper as brazil and russia are extremely uncompetitive today because they've benefitted a lot from commodity flows, but that has really done a lot of damage to the manufacturing sector. >> all right. the billionaires index, you look at the number of billionaires in a country, but you look at also the total net worth as a percentage of gdp, and what do you find and what do you try to get at?
>> you want new wealth to be created, and you don't want too much wealth to be concentrateed in a few hands, because that sort of leads to the perception that reforms or opening up the economy is only benefit aing few people, and it leads to a backlash, in fact, against economic reforms. if you look at the economic success stories of korea, taiwan, one thing that you find, which is very noticeable about them, is that the number of billionaires they have as a share of the total sort of economy is sort of fairly reasonable. if you -- the problem i find in places such as russia is exactly the opposite, which is the number of billionaires you have and the highest number of billionaires in the world, even though their economy is nowhere near the size of a u.s. or even china, and the more disturbing point about russia i find is that if you look at the number of millionaires, russia doesn't even feature in the top 15 in the world. when it comes to billionaires, or millionaires, not even the top 15 in the world. >> the title of your book is "break out nation" so there's good news here because you are
saying that the old emerging markets, the leaders, brazil, russia, china, india, are perhaps going to slow down, so what are the new ones, and why are they thriving? >> well, i think that the most important point here is about expectations. you have to have reasonable expectations about countries, and the second thing is to do with per capita income. now, if a country like korea, which i identify as still a break-out nation -- korea is a remarkable economic success story along with taiwan. it's the only economy in the world to have grown at 5% or more for five decades in a row. >> five decades. >> five decades in a row. only two did thes in the world grew at more than 5% on average. each decade. the other country with expectations can be surpassed. indonesia, turkey, philippines. i think even thailand has a chance of doing so. then a bunch of frontier markets, supper as nigeria, sri lanka. i think all these countries have a chance of surpassing expectations. >> and you're bullish on poland, i guess, i remember. >> eastern europe.
i think that europe today gets a lot of flack for the fact that you talk about europe today, and you only think about debt crisis and book-bust cycles, and the countries such as poland with very good macroeconomic finances, and a pretty stable growth rate, solid institutions, and some very good companies. i think czech is in a similar league although its economy seems to be more cyclical. i think there are a whole bunch of countries out there which can be break-out nations, which can be the countries that emerge as the new economic stars. >> pleasure to have on you. if you want sdeelted investment advice or just a great read, you have to look at the book. you have to go and buy the book. we'll be back. >> i had no idea. i didn't expect it, and i found out i had h.i.v., and back in 1993 that was a pretty -- it was definite. i will tell you in all candid, the thing i grieved most about that day was the fact that i had to withdraw my green card application, which had been
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self-identified, but he was named one of the 25 most fluing influential liberals in america by forbes magazine. he is a blogger for the daily beast. i have known you for almost 30 years now, and you were always passionately interested in america, in american politics. like me, you are an immigrant, but you have only very recently been able to get a green card. you have identified this with country. why? >> for two reasons. one, because i'm h.i.v. positive, and i have been for -- since 1993. secondly, because i'm gay. my marriage, which is legal in both my resident states, both massachusetts and washington d.c., is not recognized by the federal government, so i am not granted automatic green card by virtue of marriage along with
everybody who happens to be -- who happens to be in a same-sex marriage. >> of course, if you were straight and you were married, you would automatically -- >> i would be automatically granted because people understand that if you fall in love with someone and you want to build your life with them, and if you have been married as we have been for four years together married and together for eight. it's an injustice. american citizens, i don't think, ever thought that the right, the pursuit of happiness did not include the right to marry the person you love. for a whole number of americans, gay americans, that happens to be true, and you see it most explicitly with immigration because it's a federal issue. the marriages in the states that are legal are not recognized by the federal government because of defense of marriage act, and, therefore, immigration law does not apply to them as it would to heterosexual married couples. the other reason is that -- this is how i found out just before my medical they take blood from you in 1993 i found out that --
i did my own private medical. i had no idea. i really didn't expect it. i found out i had h.i.v. and back in 1993 that was a pretty -- it was a death sentence, but i will tell you, in all candid, the thing that i grieved most about that day was the fact that i had to withdraw my green card application, which had been approved in every other respect. it was about to become an american as i had long dreamed of, and it was dashed because of this. i was more crushed by being excluded from america for that than i was fearful of dying. >> but when you would talk to politicians because you are so well connected in washington, i mean, as you say, this is the only disease which is -- you know, it seems so obviously just an anti- -- elts skrilttory and cruel to one set of people. what was the gents this people would give you.
>> there is no defense. gays have even less of one. i actually had dinner with one of these determines with bill gates who runs the i had foundation. he was not even aware that this ban was in place, and naturally, i mean, he is now and helped to actually get the law changed. because the people affected couldn't come out and say i have h.i.v. and i have been affected by this without automatically rendering them liable for deportation or not being able to get in, so there was also this enormous stigma that the federal government was attaching to h.i.v., which was, of course, the opposite of when you are trying to do in getting treatment and prevention. we're in a much better place now. it's all resolved. there was a point in which it was just the united states, iran, saudi arabia. china lifted this thing before the united states did.
if the united states as a funder of aids research, as a philanthropist is by far the biggest actor, so it was -- we couldn't have an aids conference in america for 18 years because none of the people coming, none of the people who were positive from africa or elsewhere were able to come into the country. other people, i think if the blogger ben greenwald. he has to live. he is a very influential american blogger. he has to live in rio de janeiro because his spouse can't be -- can't get a visa to live in the united states. >> because he is -- >> because he is not recognized as a spouse. if the defense of marriage act were to end, then this would end too. this is the first time in history, including interracial marriage, that the federal government in temz of immigration, has tried to split couples up. they didn't do it even with interracial. it recognized those states where interracial marriage was legal and didn't recognize them in those states where it was illegal.
it deferred to the states. this is the first time in american history the federal government decided we will split couples up. >> you have the green card, which means you automatically at what point can apply for citizenship? >> i think it's five years, and i will do so as soon as i can. i've always felt to be a participant in this country is amazing debate, you really -- i mean, i have to say this, though. no one -- no actual american ever treated me any differently for being h.i.v. positive, gay, or british. >> maybe the third. >> no, but they gave me this ridiculous affirmation for being british. i think it's one reason i consciously lost my accent. i couldn't stand that. but to be an active participant in this debate as an american, you know, it makes a difference. it allows you to say we. as a writer, you know, a daily
writer, that's a breakthrough. i can't tell you -- i mean, it was the happiest day of my life when that came through, and i just -- i want to very much end the defense of marriage act or pass the american families act, which will allow the spouses of gay couples, who are legally married in the united states, not to be forced, if they're bi-national to have to live elsewhere. no american should be forced to choose between their spouse and their country. yet, a large number -- increasing numbers of americans are facing that. >> when you become a citizen, as one naturalized american to another, i will send you a bottle of champagne. >> thank you very much. maybe we'll drink it together. >> andrew sullivan, always a pleasure. we will be right back. the chevy cruze eco also offers 42 mpg on the highway. actually, it's cruze e-co, not ec-o. just like e-ither. or ei-ther. or e-conomical. [ chuckling ] or ec-onomical.
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in public? a, once. b, once a year. c, twice a year. d, three times. stay tuned. we'll tell you the correct answer. go to cnn.com/fareed for more of the "gps" challenge and follow us on twiter and facebook. also, remember, if you miss a show, go to itunes. you can get the audio podcast for free or you can now buy the video version. go to itunes.com/fareed. this week's book of the week is the power of habit by charles. one of the "new york times"' reporters. the book looks at the great power that our routines have over us and how some companies and people have changed the bad habits that they have. it's really fascinating with lots of great examples. just promise me you won't change your habit of watching "gps." now for the last look. a new danger for politicians. not only do they have to be careful of whom they consort with, what they say, and the
promises they don't keep. they now need to look out for what they wear. on their wrists. take a look at nicolas sarkozy and what should have been a standard political event. shaking hands at a rope line. but it turned into a scandal thanks to this little move. you see, he has a watch in this photo, and in this one taken just after he has no watch. what happened? he took off his watch and he put it in his pocket. the french press speculated whether he was worried about somebody stealing it or whether he was worried that he would get flack for its reported $75,000 price tag. well, he got flack all right. then there's this one from russia with bad luck. seems the russian orthodox church photo shopped a $30,000 watch off the wrist of its patriarch. they front of to photo shop off the reflection of the watch. oops. and you have to be especially careful if you are in china. there's a blogger there who is
set to scour the internet for images of politicians and oddly enough, monks as well, to determine what kind of watches they wear and how much more than their annual salary those watches cost. his site is, of course, frequently taken down by the chinese government sensors. the correct answer to our gps challenge question was, a, kim jong il only made one public address to his people. only spoke publicly once in his 17 years of ruling north korea. he said just one sentence. glory to the heroic soldiers of the people's army. some say he had a squeaky voice and was a bit ashamed of it. i guess we'll never know now. thanks to all of you for being part of my program this week. i will see you next week. stay tuned for "reliable sort." when newt gingrich w